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Summary

The Navy is procuring a new kind of destroyer called the DDG-1000. The ship is also known as the Zumwalt class destroyer, and was earlier called the DD(X). Navy budget plans call for procuring a total of seven DDG-1000s. The first two were procured in FY2007 using split funding (i.e., two-year incremental funding) in FY2007 and FY2008. The Navy estimates their combined procurement cost at $6,325 million. This figure includes about $1.9 billion in detailed design/nonrecurring engineering (DD/NRE) costs for the entire DDG-1000 class. The Navy's proposed FY2009 budget requests funding to procure the third DDG-1000 in FY2009; the Navy estimates its procurement cost at $2,653 million. The ship received $150 million in advance procurement funding in FY2008, and the Navy's proposed FY2009 budget requests the remaining $2,503 million. The Navy's proposed FY2009 budget also requests $51 million in advance procurement funding for the fourth DDG-1000, which the Navy budget plans call for procuring in FY2010. On July 14, 2008, defense trade publications reported that Navy leaders have recently changed their thinking and now support ending procurement of DDG-1000s with the two ships already procured and restarting procurement of Arleigh Burke (DDG-51) class destroyers, which were most recently procured in FY2005. The trade publication Inside the Navy, for example, reported on July 14 that: "In a dramatic, behind-the-scenes about-face, the Navy is rescinding support for its Zumwalt-class DDG-1000 destroyer program, seeking to persuade Pentagon leaders to limit the program to two ships and resume construction of Arleigh Burke-class DDG-51 destroyers.... Industry sources say the Navy is interested in completing the first two DDG-1000s and then buying 11 new DDG-51s, which would mean reopening production lines for the Arleigh Burkes." The House Armed Services Committee, in its report (H.Rept. 110-652 of May 16, 2008) on the FY2009 defense authorization bill (H.R. 5658), recommended reducing the Navy's request for FY2009 DDG-1000 procurement funding from $2,503 million to zero, and increasing the Navy's FY2009 request for DDG-1000 advance procurement funding from $51 million to $400 million. The report states that the $400 million is to be used either for construction of DDG-1000s or for restarting construction of Arleigh Burke (DDG-51) class destroyers, which were last procured in FY2005. The Senate Armed Services Committee, in its report (S.Rept. 110-335 of May 12, 2008) on the FY2009 defense authorization bill (S. 3001), recommended approval of the Navy's requests for FY2009 procurement and advance procurement funding for the DDG-1000 program. The DDG-1000 program raises several potential oversight issues for Congress, including the accuracy of Navy cost estimates for the program, program affordability and cost effectiveness, technical risk, and the program's potential implications for the shipbuilding industrial base. Congress has several options regarding the DDG-1000 program. This report will be updated as events warrant.

Related Legislation:
• H.R.5658
• S.3001

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